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Article: PRODUCT IN FOCUS: Car parking.
- Article from:
- Employee Benefits
- Article date:
- November 12, 2007
CopyrightCOPYRIGHT 2007 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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There can be considerable tax advantages in offering car parking benefits for staff, says David Woods
Employers that offer car parking as a benefit typically provide a season ticket for a car park near their place of work, which is paid for by employees through a salary sacrifice arrangement. Offering the perk in this way, whether it is included in a flexible benefits scheme or provided as a standalone option, has financial advantages for both employers and employees.
Thanks to a clause in the Income Tax Act 2003 employees will save on income tax and national insurance contributions (NICs), while employers will save up to 12.8% NICs on the amount that ...